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Market: BTG gets shot in the arm as Square Mile toasts oncology breakthrough

BTG was the toast of the City today: AFP/Getty Images
BTG was the toast of the City today: AFP/Getty Images

Drug-maker BTG was the toast of the Square Mile today on news that profits and revenues had soared over the past six months.

This marks a turning point for BTG, which for a long time was regarded as a somewhat “strange” company by fund managers in the City, selling obscure drugs such as anti-venom serum for snakebites. But three years ago it declared it wanted to be a “world leader in interventional oncology” — the treatment of cancer with minimally invasive procedures to minimse side effects. It is seen by medics as more advanced than chemotherapy, which destroys cancer cells but leaves patients very sick.

This session BTG said its oncology division — which makes up 40% of sales — rose 10%, further proof that its interventional oncology bet has paid off.

BTG’s Louise Makin, one of only 12 female chief executives among the UK’s 350 leading listed companies, added that the firm was looking for more acquisitions having bought US medical technology firm Veran for an undisclosed sum. Shares were up by 55.5p to 666p.

The FTSE 100 was also climbing, gaining 34.27 points to 7087.35 despite oil prices falling 1%, with Brent crude slipping below $70 per barrel.

As a result BP fell 7p to 521.1p and Shell lost 18p to 2462p.

The tech sell-off on Wall Street overnight was having little impact in London — Micro Focus climbed 35.5p to 1289.5p and Sage rose 3p to 548.2p.

But it was a tough session for FTSE 250 defence contractor Babcock which was hit by reports that defence officials are unhappy about its work maintaining nuclear deterrent submarines.

Shares fell 11.2p to 605p after news that there were “real concerns” about its work on the Vanguard-class of vessel.

Shares had rallied 2% yesterday after the business issued a statement from the Ministry of Defence indicating its commitment to Babcock.

That was in response to an attack from shadowy analyst group Boatman Capital, which said relations were strained. The murmurs of discontent from Whitehall will add credibility to Boatman’s claims.

Further down the market, fashion retailer N Brown announced it had lost a £53.8 million battle with the taxman. The firm, who’s brands include JD Williams, modelled by Sir Bruce Forsyth’s widow Wilnelia, had argued that it did not need to pay VAT on some of its marketing costs. HMRC disagreed and its shares fell 2.9p at 131.3p.

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Video-game developer Codemasters posted a pre-tax loss in its first results since it floated on AIM. Shares fell 1.5p at 170p.